Takeda Exits Dementia Drug Partnership With Denali Therapeutics

Takeda has notified Denali Therapeutics that it is terminating their collaboration to co-develop DNL593, a progranulin replacement therapy for frontotemporal dementia. The termination removes a partnered development route for DNL593, creating near-term pipeline and revenue risk for Denali and likely modestly affecting both companies' valuations and potential future milestone/royalty streams.

Analysis

Takeda has notified Denali Therapeutics that it is terminating their collaboration to co-develop DNL593, a progranulin replacement therapy for frontotemporal dementia. The termination removes a partnered development route for DNL593, creating near-term pipeline and revenue risk for Denali and likely modestly affecting both companies' valuations and potential future milestone/royalty streams.